With an enterprise value of $9.7 billion and EBITDA of $837 million the hotel company trades for just 11.6 times EBITDA. WYN owns 6500 franchiesed hotels plus various other vacation resorts, rental properties, luxury clubs, etc. People also don’t realize the effect that an aging baby boomer category is going to have on second home ownership at vacation resort clubs (golf clubs, etc). WYN is big in this category and also offers financing for vacation home ownership. In the Barrons Summary portfolio from June 11, Barrons states: “ Wyndham was spun out by Cendant last August, coming public at about 32 a share. It now trades for 35 and change and has a market value of $6.5 billion, though some fans are betting it's worth closer to 60 a share. "It's new, underappreciated and underfollowed," says Walter Scully, an analyst at Putnam Investments, which loaded up on Wyndham shares late last year."” I also like that WYN insider Stephen Holmes has been going into the open market and buying $1.5 million worth of shares for himself at $36.20 per share. This transaction occurred on May 15, 2007

Harrah’s Entertainment (HET), the hotel and casino operator, is also on our list even though it has already agreed to be bought in a private equity transaction for $90 per share. The market has been skeptical of the deal closing by year-end because of concerns about financing. However, with this HLT deal being announced its clear the HET will close as quickly as possible. If the deal closes by year’s end, then the current return from here is 5.5%, or an annualized spread of 11%. Given that this deal is a lock, a safe, annualized return of 11% is a much better use of cash than a T-bill or any other equivalent fixed income investment. With a $27 billion market cap and $2.5 billion in EBITDA the company trades at just 11 times EBITDA so even if a deal were to fall through its highly likely another deal would occur even at a higher price than $90. Analysts exect that multiple to improve with estimates on earnings per share going from $3.75 in 2007 to $4.38 in 2008 and analysts also expecting revenues to improve from $10.44 billion in 2007 to $10.91 billion in 2008. On July 1, various directors bought shares at $85.34 per share. In the most recent Barrons, they listed various other companies, including HET, that offer attractive spreads if the deals they are involved in occur. This list includes Sam Zell’s acauiqisiton of TRB, which has over a 20% annualized spread right now as investors worry the deal will not close by year’s end.

Starwood hotels - 12.8x EBITDA - Analysts expect earnings to go from 2.58 eps to 3.01 eps - directors have been purchasing shares - they've greatly exceeded analyst expectations for 4 qtrs in a row.

- 14x EBITDA - analysts expect earnings to go 2.02 last year to 2.24 this year to 2.64 EPS in 2008 -

- casino/hotel company - 8.3x EBITDA - retail expert Hayground Cove owns 6% -

- 10x EBITDA - Analysts expect EPS to go from 1.65 to 2.65 - 8.8 short ratio - some mild insider buying.

- 10x EBITDA - underleveraged with $44mm cash in bank and no debt - analysts expect eps to go from 1.27 in 2007 to 1.44 in 2008

- 14x EBITDA - probably underleveraged with $185mm in EBITDA and $184mm in debt - analysts expect about 10% growth.